ITIN for Canadians: When You Need One and How to Apply

Which Canadians need a US ITIN, and which do not?

A Canadian needs an ITIN when they have a US federal tax purpose, such as filing a US return or claiming a refund, and cannot get a US Social Security number (SSN) (IRS: ITIN). The ITIN is a nine-digit IRS number for a person. It goes on Form 1040-NR and on forms such as W-8ECI.

What makes a case harder: a sale already closing with withholding, a 1040-NR due with no number yet, a rejected Form W-7 (Notice CP567), an IRS letter asking for your number after a sale, or a US LLC, which raises its own Canadian tax questions (US LLC owned by a Canadian).

Gather: a valid passport; the US return or the exception papers (sales contract or Closing Disclosure, Forms 8288-A or 8288-B, Schedule K-1, Form 8805); your SIN; any Form 1042-S showing US tax withheld; and any old ITIN notice (CP565) or IRS letter.

Can I use my Canadian SIN instead of an ITIN?

No, not on a US tax return. A person who cannot get an SSN and must file a US return applies for an ITIN (IRS: Form W-7 instructions). The SIN still goes on Form W-7 line 6b, which asks Canadian residents for it.

On Form W-8BEN, a Canadian may enter the SIN on line 6a, instead of a US number, to claim treaty benefits (IRS: W-8BEN instructions). For withholding by US payers, see US tax withheld on payments to Canadians.

Can I get an ITIN without filing a US tax return?

Yes, if an exception in the Form W-7 instructions fits. You send the exception's documents instead of a return, and you can apply at any time. The withholding or reporting must happen in the current tax year, and Exception 1 is not available to anyone required to file a US return (IRS: Form W-7 instructions).

A partner in a partnership doing US business usually has to file a return, so Exception 1 may not fit; that partner can apply with the 1040-NR. For partnership unit sales, see US partnership units and withholding.

For a sale, the IRS denies an ITIN requested before there is a legally binding sale contract, unless you have another reason to need one (IRS: FIRPTA withholding). Once the contract is signed, apply under Exception 4. To ask for lower withholding, attach Form 8288-B to the W-7 and send them together. The IRS says it processes that ITIN request within 10 days of receipt. It generally acts on the certificate within 90 days of a complete application, which needs every party's US number (IRS: withholding certificates). The rest of the sale is in Canadians selling US real estate.

How do I apply for an ITIN from Canada?

Send Form W-7 with your first 1040-NR (or the exception documents) and your passport, by mail to the IRS in Austin, Texas, or through an IRS-approved acceptance agent in Canada (IRS: how to apply).

1. Complete Form W-7. Check reason b (nonresident alien filing a US return), or h with the exception named, such as "Exception 4". If the exception claims a treaty benefit, also check a and enter Canada and the treaty article. Enter your Canadian home address on line 3 and your SIN on line 6b. If you ever had an ITIN or an IRS-issued number, enter it on line 6f. Write "N/A" in any section that does not apply; do not leave one blank.
2. Attach Form W-7 to the front of your paper 1040-NR and leave the SSN box blank. The IRS writes in the ITIN and processes the return.
3. Add your passport, or a certified copy (next section).
4. Submit it one of these ways. Do not send it to the regular 1040-NR mailing address.

The IRS publishes its list of acceptance agents in Canada; an entry without an asterisk is a Certifying Acceptance Agent (IRS: acceptance agent program).

Is my Canadian passport enough, and do I have to mail it?

A valid passport is enough on its own: it proves both identity and foreign status, and it is the only document accepted alone (IRS: ITIN supporting documents). It must not be expired on the date you submit, which the postmark generally sets.

You do not have to mail the original. The IRS accepts:

• The original, returned to the line 2 address within 60 days. You may include a prepaid express or courier envelope for its return.
• A certified copy from the agency that issued the passport, if it offers one, or certified by an officer at a US embassy or consulate (ask first; services vary). A copy certified by anyone else is not an issuing-agency copy.
• An in-person check by a Certifying Acceptance Agent or a Taxpayer Assistance Center, which hands it straight back.

If you will need your passport within 60 days, the IRS suggests applying in person (IRS: Form W-7 instructions). If you live in Canada on another country's passport, the same rules apply: enter that country on line 6a and your SIN on line 6b; an issuing-agency copy must come from that country. Without a passport, you need at least two documents from the IRS list, one with a photo.

How long does an ITIN take from Canada?

Allow 7 weeks, or 9 to 11 weeks from January 15 to April 30 or when you apply from overseas (IRS: how to apply). The IRS does not say whether Canada counts as overseas, so plan on the longer window.

You cannot e-file a return with your ITIN in the calendar year it is assigned; the next year you can (IRS: Form W-7 instructions).

What if my US return is due before the ITIN arrives?

Do not wait for the number. File the 1040-NR by its due date with Form W-7 attached; the application and the return travel together (IRS: Form W-7 instructions). With no US wages subject to withholding, the 1040-NR is due on the 15th day of the 6th month after the year ends, June 15 for a calendar year (IRS: Form 1040-NR instructions).

If you need more time, file Form 4868 by the due date and write "ITIN TO BE REQUESTED" where the SSN or ITIN goes. Estimated payments on Form 1040-ES (NR) work the same way. Do not attach a W-7 to either form (IRS: ITIN). The extension covers filing only, not paying. Applying by the due date, including extensions, also matters for credits that need your number issued by then, such as the credit for other dependents: the IRS treats an ITIN applied for by that date as issued by it (IRS: Form W-7 instructions).

If the return is already late, the usual limit for keeping its deductions is 16 months after the original due date, not counting an extension; if the year before was not filed either, an IRS notice can end it sooner. A 1040-NR filed later generally loses the deductions that bring gross rent or business income down to net, unless the IRS waives the limit (26 CFR 1.874-1). Penalties are a separate question: for a rental see Canadians with US rental property; for several years see catching up on missed US returns.

Does my spouse or child need an ITIN too?

Only if that person files their own US return or is claimed on yours for an allowable tax benefit; being listed on your return is not enough (IRS: Form W-7 instructions). Each applicant sends a separate Form W-7.

• Spouses who co-own a rental and each file a 1040-NR each need an ITIN.
• Spouses who sell a jointly owned US property each need one: each claims a share of the withholding, and the IRS sends the stamped Form 8288-A only to a seller whose number it has (IRS: Form 8288 instructions).
• A Canadian spouse filing jointly with a US citizen or resident needs one. See married to a nonresident.
• A child needs one only when claimed for a benefit the W-7 instructions list. A parent filing Form 1040-NR cannot file as head of household (IRS: Form 1040-NR instructions), and the credit for other dependents needs a child who is a US citizen, national or resident. A child from Canada claimed for another listed benefit does not have to prove US residency.

Does an ITIN expire?

Yes. An ITIN not used on a US federal tax return for 3 consecutive tax years expires on December 31 of the third year (IRS: how to renew). A Canadian who files a rental return every year keeps it active.

To renew, check "Renew an existing ITIN" on Form W-7, enter the old number on line 6f, and attach it to your next return with your passport. An ITIN used only on information returns, such as Form 1042-S, does not need renewal until you file. An ITIN issued before 2013 and never renewed must also be renewed before use. Filing with an expired ITIN can delay the return and cost certain credits.

Does an ITIN make me a US taxpayer or change my Canadian return?

No, not by itself. An ITIN is for US federal tax purposes only: it gives no immigration status, work permission or Social Security benefits (IRS: ITIN). Your US income, not the number, decides what you owe. A joint return with a US spouse is different: its election makes you a US resident for income tax, so your worldwide income goes on the US return (26 USC 6013(g)); see married to a nonresident.

A Canadian resident reports world income, so the US rent, LLC profit or gain also goes on the Canadian return (CRA). How the US tax is credited is covered in US rental property and US LLC filing. If you later get an SSN, stop using the ITIN and ask the IRS to combine your records.

Example

These examples are illustrative and in US dollars.

A Calgary couple with a Phoenix condo

• Year 1: The condo earns US$24,000 of rent, owned half each. With no W-8ECI on file, the property manager withholds 30%, or US$7,200.
• Early year 2: Each spouse prepares a 1040-NR reporting a US$12,000 share on a net basis, with a W-7 on the front. They book a Certifying Acceptance Agent in Canada from the IRS list; their passports are checked and handed back the same day.
• About 9 to 11 weeks later: Two CP565 notices arrive. Each gives the manager a W-8ECI with the new ITIN, and the year 2 return can be e-filed.

An Ontario seller of a Florida house

She sells for US$400,000 and the general rate applies, so the buyer withholds 15%, or US$60,000. After closing, in the same year, she applies under Exception 4 with the Closing Disclosure and copies of the buyer's Forms 8288 and 8288-A, rather than waiting to attach the W-7 to next year's 1040-NR. Once the IRS has her ITIN, it sends her the stamped Copy B of Form 8288-A. If her US tax on the gain is US$15,000, her 1040-NR claims the other US$45,000 back.

A Toronto owner of a US single-member LLC

The one-owner LLC, which has not elected to be taxed as a corporation, earns US$80,000 net from US business and has its own EIN. The owner still files a 1040-NR with a W-7 attached; the LLC's EIN does not replace the owner's ITIN. Whether the LLC suits a Canadian owner is a separate question.

Different for you?

• You live outside Canada, or need an EIN for a company: see ITIN for a foreign owner.
• You need the yearly 1040-NR for a rental, or it is late: see Canadians with US rental property; if returns are late, get cross-border tax help.
• A sale is closing with withholding, or you want a withholding certificate: see Canadians selling US real estate and get cross-border tax help before the closing date.
• You own a US LLC: see what a Canadian LLC owner files and whether the LLC is a mistake, then get cross-border tax help.
• You plan to file jointly with a US spouse: the election lasts beyond one year; see married to a nonresident and get cross-border tax help before you elect.
• A US payer withheld tax or wants Form W-8BEN: see US tax withheld on payments to Canadians.
• You sold US partnership units: see US partnership units and withholding.
• You have missed US returns: see catching up on missed US returns.
• Your W-7 was rejected, or the 1040-NR is due with no number: get cross-border tax help with the notice, the return and your passport.